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Assume that each year a company normally produces and sells 80,000 units of...

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Accounting

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Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 10.00 2.80 5.00 1.70 4.50 $ 33.50 The company's relevant range of production is 70,000 - 100,000 units. It has an opportunity to sell 20,000 more units to new overseas customer. The import duties and foreign permits associated with the order would cost $16,000. However, the only selling cost associated with the order would be $1.50 per unit. What is the minimum price that the company could charge on this order and still break even with respect to this opportunity? Multiple Choice $26.30 O $23.80 o $24.80

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